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Showing posts from December, 2018

Transition Rule regarding DPAD and QBI Calculations for Producers with Sales to Cooperatives

This is an update that will only affect tax professionals that prepare farm tax returns.  If you do not prepare farm returns, the following will not impact you or your practice.

The Consolidated Appropriations Act includes a transition rule for farmers who receive a cooperative payment in 2018 that is attributable to QPAI for which the old DPAD deduction was applicable. This will include any QPAI attributable to a cooperative tax year beginning before 2018. See Section 101(c)(2). With the original DPAD gone in 2018, taxpayers were left to wonder how to report such DPAD allocations. The law clarifies that such farmers will still be able to take the old DPAD deduction in 2018, as long as it is attributable to QPAI which was allowed to the cooperative for a tax year beginning before 2018. No 199A deduction will be allowed for such payments.
Most cooperatives operate under a fiscal year.  The transition rule will affect farmers that did business with a cooperative with a …

Women in Ag Network's December Feature

Our December 2018 “Women in Ag” feature is Erica Sawatzke. After working for MN Turkey Growers Association she returned to her family turkey breeding farm near Kensington, MN. I met Erica this past September when she spoke at an Ag and Animal Science Conference. I enjoyed hearing about her involvement in the family farm and passion for agriculture.

Year-End Tax Planning Webinars for Producers

The University of Minnesota Extension will be holding two, 60-minute webinars for agricultural producers. The content of these webinars will be geared toward farm operators and managers. Farm management instructors and agricultural professionals may also find the content useful. This webinar will not qualify for Continuing Professional Education (CPE) or Continuing Legal Education (CLE) hours.

Both webinars will focus on the content of the Tax Cuts and Jobs Act (TCJA) and how TCJA will affect agricultural producers in calendar year 2018.
The two webinars will be held on:  Thursday, December 13, 2018 -- 1:30 PM to 2:30 PM CST
Join webinar:
Friday, December 14, 2018 – 10:00 AM to 11:00 AM CST
Join webinar:
Tentative Topics to be covered include: Changes to tax rates, capital gains, standard deduction and personal exemptions Child Tax Credit and Kiddie Tax Charitable Contributions and Alternative Minimum Tax Elimination of Domest…